Hi All, Initially, I planned to make a video highlighting a potential glitch in the income tax portal in 87A rebate calculation. I spent two days researching and checked hundreds of clients with special rate income, finding only one reason for the change. Despite my efforts, this video has received many negative comments, with some calling it a " _pathetic interpretation_ ." Please understand the hard work that goes into making a 15-minute video or an infographic. Tax matters are always open to different opinions, and I respect everyone’s views. However, having a different opinion does not mean one is wrong. Thank you for understanding i will soon make a new video soon and *this video is also 100% correct as confirmed by income tax department and income tax calculator is now calculating as per this video only.* Regards, Vivek Awasthi
@@FinTaxPro but how ITD will justify someone who Would have got this in old regime & filed new regime bcos it was offering 25k in new regime... Now suddenly in between how ITD can change this?... In that case they should also allow change of revised filing under old regime... Otherwise they can be challenged in court of law!!
@@fintaxproadvisoryllp3135... In revised ITR, is regime change selection allowed if someone has already filed with new (default) regime for fy23-34?... since regime change is allowed only once in NY FY?
Sir pl help in this case Salary Income 650000/- LTCG 250000/- Interest 28000/- Total Income 92800/- Std deduction 50000/- Net Total Income 878000/- As per Income Tax portal Total Tax Approx 34000/- Rebate us 87A 18000( on other than LTCG Tax) Net Payable Tax Rs 16000/-Aprrox. But while checking with winman there is no rebate available and total Tax is payable of Rs 34000/- What should I do ? Go with Income Tax Portal or winman ? Pl suggest any solution?
Sir, probe your memory. After 87A threshold expiry, in old regime, the normal slab rate above 5.0 lakh was 20%. Slab rate above 10 lakh was 30%. But, Spl rate for equity LTCG was 0% or 10%. Spl rate for equity STCG was 15%. Note that the spl rates, in view of very high risk, were always kept LOWER than slab rates. Now trickery starts. In new regime, slab rate upto 12 lakh is 5%, 10%, 15%. Thus, slab rate is now lower but spl rate is now higher. Equity LTCG and STCG rates have not been reduced proportionately in new regime to keep them lower as earlier. Thus, the LTCG and STCG rates are rendered NOT LOWER than slab rates. The high risk evaporates. Equity is treated like a shopkeeper commodity. Equity investors, who are special voters, notice the trickery. Income is gained from salary, interest, and equity LTCG, STCG. New Tax threshold is 7.0 lakh. You do not tax below 7.0 lakh interest or salary income but levy tax on below 7.0 lakh equity CG income. This is pure discrimination, not permitted under Constitution. Equal treatment is being denied. Those who make discriminatory rules or law, are reneging on their Constitutional oath. You have power to make only those rules, which are compliant with Constitution.
Agreed sir, but in Section 115BAC (1A) they have written as "total income" and not "other than special rate income" so as per this rebate u/s 87A should be allowed for special rate of income as well.
With the respect grievance raise by you, as checked your case with higher officials, if your total taxable income includes special income which are chargeable to special rates of taxes is upto 7 lakhs as per new tax regime then rebate u/s 87A will be available only to the extent taxable income which is chargeable to normal rates of taxes as "Rebate u/s 87A(1A) is not allowed for any special rate income" So, accordingly kindly proceed to file the return. I got these reply from the department. It means it is not an error of income tax site.
So this thing is applicable only in case of new tax regime and not in old tax regime? Because in old tax regime rebate is available for special income also.
Sir, The power Grid Invt. Ltd is paying a 3% dividend every quarterly, which consists of taxable Dividend, tax free dividend, Interest and SPV loan repayment amount etc. Can you please make a video, on how to show these amounts in ITR 2 in the column Imcome from other sources? What are the amounts in these categories are taxable and tax free in the hands of the investor & how to show in ITR 2? Thanks sir
I am using Winman Software and it is showing full rebate but where as i also encountered the same issue in Income Tax portal. lets wait foe few days so that there may be any update from department.
[11/07, 11:33 AM] Vinay Kumar: 1 person staying in dubai & India in fy 2023-2024...got salary as foreign remittance of around 11 lakhs...how it can be shown in IT Return, In India also he had done consultancy job of around 2.5 lakh [11/07, 11:34 AM] Vinay Kumar: How to show in IT Retuen & which form ITR..
Sir if we claim this rebate 87A through old regime so will it be correct? or there is a chance of getting notice for claiming that. Asking this as its getting applied automatically so just wanted to confirm with you once.
Wrong interpretation, wahan total income bhi likha hai plus "special rates" mentioned nahi hai. Infact sec- 87A ke under specifically likha hai ki 112A ke against rebate nahi milegi for old n new regime. Infact CA final may2024 attempt ke study mat. questions mein pura pura 25000 liya hua hai. Ye glitch ke karan hai...
Income of spl rate of tax is not to be added in total income for 87A rebate purpose . It means on income of spl rate of tax we have to pay tax and balance income chargeable to 115BAC we will get rebate max 25000 if that income is below 7 lacs. Am I right ?
Income from units of a business trust (Section 194LBA) , I had shares of Embasy REITS. I am not finding where to fill this income in ITR 3. Please help.
I have a simple solution for those who have more LTCG and STCG.You can file ITR3 under the head PGBP. Then you total will be charged under normal businessman slab rate and you will end up paying zero tax up to 7 lac
Dikha sakte ho but long term m agar client ki income 5 crore ho jati hai. Tab PGBP m lagega 30% and Cap Gain m lagega 10% or 15% Thoda bada socho aap baar baat change nahi kar sakte.
Wrong interpretation of Act...please read Sec 87A again and interpret it correctly. Earlier Sec 87A used to talk about old tax regime(5lakhs), but after proviso was inserted, it talks about new tax regime(7lakhs).
Sir on the 1st April in win from dream 11 15000 then they cut 30% tds and give me 10500 and after that I loss 50000 during same financial year then on income tax portal showing my income of 15000/- but overall I am in loss then how I show loss in my books......
Great discussion. I'm searching this issue . Income tax Calculator also give wrong calculations. my short term capital gain is 2.4 lakh ,intraday 1.25 lakh with 65 thousand other income and zero salary income ,will i get tax rebate under section 87a in itr 3 old regime
Sir I am not getting 87a rebate on salary income even in old tax regime that's also in total is less than 12500/- from salary income. Other stcg is 1100/- extra. Total rebate under 87a in my case is 0.can u explain why
Thank you so much sir , Absolutely relevant topic recently , I am also facing difficulties regarding this matter for few days . thanks for this discussion
Agar LTCG, 1 lac se kam hai to new tax regime mein tax dena hoga? Aur kya 87A rebate milega if LTCG is less than 1 lac but tax liability ban rahi hai from other incomes heads
I have one question if you can answer. This new logic of rebate 87A under new tax regime is applicable from this year only or it will be applicable for previous years as well?
@@FinTaxPro Thank you for the reply and one more query if we claim this rebate 87A through old regime so will it be correct? or there is a chance of getting notice for claiming that. Asking this as its getting applied automatically so just wanted to confirm with you once.
So if my normal income is Rs. 695000 and STCG u/s 111A is 50000. My total income goes to 745000, but i will get rebate u/s 87A for normal income as it is less than 700000 and tax liab will be 15% of 50000 plus cess. Right? Also, if my normal income remains 695000, and my special rate income goes to say 50,00,000 , i will be still getting rebate for normal income as it is less than 700000. But a rebate on tax when your total income is 56,95,000 does not sound logical.
Sir plz tell me where to show sbi life maturity income which is reflected in AIS and tds deducted u/s 194DA.should I take the amount credited shown by AIS or some other amount for showing in ITR1?
Sir but Computax still allows Rebate 87A and also in computation it shows rebate u/s 87A so is it any possibility of demand if we file through computax..??
Nice video, So if we have both income- special rate and non special rate then tax on non special rate we will get rebate u/s 87A and remaining we have to pay (special rate) ?
My employer have filed for New Tax Regime. But, while filing ITR, I opted for Old Tax Regime by filling 10IEA. Now, there I don't know why Rebate under 87A is showing 0 and not 12500. Even though I opted for Old Regime, can I fill for New Regime with default option "No"?????????? Please 🙏🙏🙏 reply 😢😢😢😢 Or, I have to opt for New Regime again
Sir ek client ka actual sales tha 2cr exempt sales hain unka milk sales but bank loan ke liye usne sales dala 5 cr to uska gst portal pe adjustment ya amendments kise Kare pls reply
@@ArnabMaity1947 Bhai new tax regime me RS.13500/- ka tax tha after 3 days file kiya tha old regime me now 13500/- full refund hai per REFUND ABHI NAHI MILA OR RETURN BHI PROCESS NAHI HUA HAI.
@harshmalhotra7838 non salary ja sakta hai. Salary wala bhi ja Sakata hai per non salary again new tax me switch nahi Kar sakta. Also ask some other expert